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Quantity Schedule & Cost Analysis Methods

1. A quantity schedule shows 50,000 total units to be accounted for, with 42,000 transferred to the next department and 8,000 units of work in process that are 75% and 50% complete with respect to materials and conversion costs. This results in 48,000 equivalent units for materials and 46,000 for conversion. 2. The document asks the student to determine the costs per equivalent unit for the month using the data provided.

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145 views4 pages

Quantity Schedule & Cost Analysis Methods

1. A quantity schedule shows 50,000 total units to be accounted for, with 42,000 transferred to the next department and 8,000 units of work in process that are 75% and 50% complete with respect to materials and conversion costs. This results in 48,000 equivalent units for materials and 46,000 for conversion. 2. The document asks the student to determine the costs per equivalent unit for the month using the data provided.

Uploaded by

Wam Own
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd

Exe 4-17) Quantity Schedule, Equivalent Units, and Cost per Equivalent Unit-

Weighted Average Method

Pureform, Inc., Manufactures a product that passes through two departments. Data for a

recent month for the first department follow:

Units Materials Labor Overhead

Work in process, beginning5,000 $4,320 $1,040 $1,790

Units started in process..45,000

Units transferred out42,000

Work in process, ending.8, 000

Cost added during the month. $52,800 21,500 $32,250

The beginning work in process inventory was 80% complete with respect to

materials and 60% complete with respect to labor and overhead. The ending work in

process inventory was 75% complete with respect to materials and 50% complete

with respect to labor and overhead.

Requires:

1. Assume that the company uses the weighted-average method of accounting

for units and costs. Prepare a quantity schedule and a computation of

equivalent units for the month for the first department.

2. Determine the costs per equivalent unit for the month.

1.)
Materials Conversion

Units transferred to the next department42,000 42,000

Work in process,

8,000 units x 75% complete with respect to materials6,000

8,000 units x 50% complete with respect to conversion.4, 000

Equivalent units of production.48, 000 46,000

Ok I dont know if this is correct.

Quantity Schedule:

Units to be accounted for:

Work in process, (materials 80%complete, conversion 60%).5, 000

Started into production45,000

Total units to be accounted for.50, 000

Units accounted for as follows: .Materials Conversion

Transferred to next dept.42, 000

Work in process, (materials 75% complete, conversion 50%complete)8,000

Total units accounted for 50,000 (42,000+8,000=50,000)

8,000 units x 75% =6,000 equivalent units

8,000 units x 50%= 4,000 equivalent units

Equivalent units

MATERIALS 48,000 and Conversion 46,000/


I need help doing the cost per equivalent unit

I cant figure out the total cost.

I can come over tomorrow after work or whatever you dont have class. It is not due until

Sunday.

Exe 4-18). Quantity Schedule, Equivalent Units, and Cost per Equivalent Unit-FIFO

Method

Refer to data in exe 4-17

Required:

1. Assume that the company uses the FIFO method of accounting for units and costs.

Prepare a quantity schedule and a computation of equivalent units for the month

for the first processing department.

2. Determine the costs per equivalent unit for the month.

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